During the first half of the 2023/2024 fiscal year, Energie AG Oberösterreich was faced with a demanding energy market that was strongly influenced by geopolitical developments and the deteriorating economic environment in Austria. This backdrop has presented a challenge, both to our operational resilience and in terms of shaping a sustainable energy future.
The continuing crisis in the Middle East, Russia’s ongoing war of aggression against Ukraine and the resulting turbulence on energy markets required continual vigilance and responses. Compared to the same period of the previous year, wholesale prices of electricity, gas and CO2 have fallen. Meanwhile, the market has remained highly volatile, necessitating flexible and far-sighted measures.
During the reporting period, electricity production from renewable energy sources increased significantly. Electricity production from the company’s hydroelectric power plants and procurement rights, which have risen by 22.5% compared to the same period of the previous, have been direct consequences of higher water levels.
In response to the dynamic market conditions and changing customer needs, Energie AG has continued to invest in products with a focus on decarbonisation while expanding its range for clients in the area of photovoltaics and electromobility. Customised power purchase agreements (PPAs) and on-site PV contracting offers are only two examples of our efforts to provide innovative solutions that take account of evolving consumer behaviour while underlining our position as a dependable energy supplier.
“The first half of the 2023/2024 fiscal year was characterised by a demanding energy market – one that is influenced by geopolitical developments and deteriorating economic environment. In spite of these challenges, we have consistently pushed ahead with the expansion of renewable energies and with investment in our network infrastructure. In this way, we will ensure our energy supplies are more sustainable and resilient as we deliver our contribution to a fossil-free future.”
A series of legislative developments, including the revised Building Efficiency Directive and the amendment to the Renewable Energy Expansion Act have given us added impetus to intensify work on projects aimed at promoting energy efficiency. Measures to cut emissions and expand our network infrastructure have been introduced. Among other things, these include the expansion of capacities to generate electricity from renewable sources and improving the energy efficiency of existing plants. The focus here was on the implementation of advanced technologies and processes to consolidate our commitment to climate action while actively working towards our own corporate targets as well as European and global climate goals.
Moreover, progress on the Group’s strategy project LOOP has clearly demonstrated the way in which the company is helping to shape the energy transition and the digital transformation. Our planned initiatives are being steadily realised, with the commencement of the pumped-storage power plant construction in Ebensee and an investment in the Slovenian project development company AAE Gamit, which specialises in wind power and photovoltaic projects. Moreover, the new Group Innovation holding unit, which was created in October 2023, is strengthening competitiveness by enhancing innovation management across the Group. The amalgamation of telecommunications and IT activities under the auspices of the newly established entity Energie AG Oberösterreich Services und Digital Solutions GmbH seeks to exploit synergies more effectively and improve service quality at customer touchpoints through automated digital solutions.
Security of supply remains a strategic priority for Energie AG Oberösterreich. In response to the mounting challenges of weather events and intensifying demands, Energie AG has stepped up its investments in the automation of the network infrastructure. The crisis and emergency management strategies have also been revised and expanded with a view to enhancing the resilience of critical infrastructure and safeguarding the reliability of energy supply, even during extreme weather events.
“The term ‘energy transition’ points to a radical change and a shift towards the emergence of a sustainable energy system. For energy suppliers in particular, the economic challenges associated with the transformation will be tremendous. Stable economic results – such as those evidenced by the semi-annual results of the Energie AG Group – and the upholding of a sound financial structure are essential for funding the investments needed to support the energy transition.”
During the reporting period, Dipl.-Ing. Alexander Kirchner MBA was appointed as CTO after Dipl-Ing. Stefan Stallinger MBA stepped down from the Management Board of Energie AG Oberösterreich. Dipl.-Ing. Kirchner MBA will take up his post as Chief Technical Officer on 1 August 2024.
Digitalisation and the customer experience are also central planks of our corporate strategy of optimising operational efficiency and improving our customer service. Increased use of data analytics and artificial intelligence will continue to upgrade business processes as Energie AG develops customised energy solutions. These digital initiatives are critical in terms of improving the reliability of supply as well as interactions with customers, which will ultimately lead to greater customer satisfaction and retention.
Overall, these developments affirm the commitment of Energie AG Oberösterreich to establishing itself as a responsible and innovative company capable of responding to the challenges of the energy revolution. All strategic decisions and investments are aimed at consolidating our company’s position with a fast-moving market environment.
Finally, we would like to offer special thanks to our employees, stakeholders and partners for their steadfast support and dedication, which is fundamental to the success of Energie AG Oberösterreich.
Linz, 29 May 2024
The Management Board of Energie AG Oberösterreich
Dr. Leonhard Schitter
Chairman of the Management Board
CEO
Dr. Andreas Kolar
Member of the Management Board
CFO